Reveals payroll budget problems not disclosed before tax renewal referendum

If all the public relations media releases by the Port of Caddo-Bossier are to be swallowed, then one would think the Port is a cross between Fort Knox and its gold treasury reserves and the Department of Currency that prints greenbacks by the millions.

Backed by a high-dollar media campaign funded by Port tenants, the construction industry who builds at the port and even AEP/SWEPCO, Caddo and Bossier voters approved on April 9 of this year a 25-year renewal of a 2.5 mil ad valorem tax that was on the books for another two years – expiring in 2018.

Before the vote, questions were raised by concerned citizens over many aspects of the Port’s operations, ranging from its $14 million headquarters building to its excessive payroll: Its 20 employees draw almost $2 million per year with Executive Director Eric England being paid in excess of $275,000 per year. Additionally, Port officials would not explain their justification for purchasing from a former Port commissioner a $2.64 million tract that cannot be used for Port operations because of zoning; nor would they explain setting the tax renewal on a separate election date from a presidential primary on March 5 or the presidential election Nov. 8.

And although Port commissioners have steadfastly claimed for years that the streets were paved with gold at the sprawling port facility on Highway 1, a recent budget committee meeting spilled the milk on that dream in a bigtime way. The short version recited by England is that revenues from the Port’s heydays in 2014 to date had fallen approximately 40 percent, while labor costs had grown from 19 percent of 2014 operation income to 31 percent in 2016. Income from Port operations in 2104 was approximately $850,000; England projected 2106 operational income to be approximately $500,000 – in round dollars, a decline of $350,000.

England said that rail and barge tonnage into the Port has been severely impacted by the 2015 and 2016 flooding of the Red River. He advised that, although the river was dropping back to normal pool levels that are needed for barge traffic, heavy silting from the floods had rendered the five locks and dams inoperable for barge traffic. Until the U.S. Army Corp of Engineers removes the silt, which is not scheduled for this year, barge traffic to the Port will be non-existent and, thus, no barge income. Rail tonnage also declined along with barge traffic since much of the tonnage loaded onto and from barges is transported by rail. England also cited the severe downturn in oil and gas exploration as a factor in less rail traffic – and the now non-existent barge traffic.

Much like Nero fiddling while Rome was burning, England did not have any solutions for the budget committee. Layoffs of workers was discussed; England explained that the Port’s rail operations required manning year-round, 24 hours per day and that federal railroad regulations limited over time and heavily regulated manpower requirements. He also said that the workers that were usually involved in barge operations were needed to provide maintenance, etc. of the Port facility. There was discussion of possible layoffs in management, which most observers believe is not only top-heavy but also highly over-compensated. The budget meeting was concluded with no solutions adopted to deal with the anticipated budget shortfall for this year.

Obviously, England and the Port staff knew – or should have known – of the budget shortfall much sooner than May – most likely at the end of the first quarter (March) of this year, if not sooner. Seemingly, the Port commissioners on the budget committee as well as the entire board of commissioners were aware of the economic losses from the first 2015 flooding, if not the second 2105 flooding or the early 2016 flooding of the Red River. And if that group was not aware of devastating decline in the oil/business and its impact on Port revenues, then they all should tender their resignations post-haste. How the Port commissioners and Port staff cannot be accused of gross misfeasance in not disclosing to the public the Port’s real economic picture before and even during the tax renewal campaign is a question that needs to be answered.

– John E. Settle, Jr.